Tesla is in a bubble and is not growing, so it could “collapse” and fall 91%, says a longtime bear.

• Per Lekander, a longtime bear who has shorted the stock since 2020, says Tesla could eventually fall to $14 per share.

• Lekander, who has shorted Tesla stock since 2020, calls this the biggest bubble in “modern history.”

• Elon Musk’s EV maker is facing demand issues and struggling with its business model, he said.

Per Lekander, a hedge funder and longtime bear, says Tesla’s stock is in a bubble and is at risk of “collapse” due to “no growth.”

Lekander told CNBC: I have been shorting Tesla stock since 2020., issued a new warning to Elon Musk’s EV maker on Wednesday.This year, as the stock price is already down 34%. Amid concerns about EV demand and Mr. Musk’s approach to the company. car delivery Things didn’t go well in the first quarter, but injuries added to the situation. Wall Street sentiment is worsening For what was once my brand.

“This was really the beginning of the end of the Tesla bubble. It was probably the biggest stock market bubble in modern history. In fact, I think the stock price and the company could go bankrupt,” Lekander told CNBC on Wednesday. ” he said.

Lekander predicts the stock could fall to just $14 per share, implying a 91% drop from its current price. He points to the drawbacks of Tesla’s business model, which relies on strong revenue growth, vertically integrates to earn profits from car sales, and sells cars directly to consumers.

“It’s a great model [there’s] Grow… because you actually get paid to grow and you get all the margin. The problem is that when you go into adversity and sales decline, you go back into adversity,” Lekander said. Tesla currently faces fixed costs and negative working capital payments, and debt is reducing the business’s profitability. He pointed out that the company’s current situation exceeds its assets. .

It came at a time when Tesla was already facing demand issues, he added. The majority of Tesla’s sales come from the Model 3 and Model Y, with no new models scheduled to be released until 2025. Lekander was skeptical about the timeline, saying it probably wouldn’t be released until 2026.

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Meanwhile, Tesla’s competitors are preparing new lineups for 2024. Volkswagen, for example, is introducing about 13 new car models this year.

Investors will face a ‘real shock’ as Tesla rolls out new products Q1 earnings report Lekander predicted that internal problems would start to show up in the “real numbers” within weeks.

“These models are outdated and given that the economy is not growing rapidly, I see no reason why we will see a recovery in the next two years,” he later added.

It’s notable that Lekander, a longtime critic of Elon Musk’s automaker, is missing out on Tesla’s impressive gains heading into 2024. By shorting his stock, he would have missed out on Tesla’s 354% rise since 2020, with the stock priced just below. Four years ago it was $30.

Meanwhile, other Wall Street forecasters predict better days ahead for Tesla, despite the short-term difficulties. Wedbush still sees room for the stock to rise 66%.despite “disastrous” first-quarter deliveries.

Tesla did not immediately respond to Business Insider’s request for comment.

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